Document background
Share Vesting Agreements are essential tools in modern corporate structuring and employee retention strategies, particularly in Hong Kong's dynamic business environment. These agreements are commonly used when companies want to grant shares to employees, founders, or key stakeholders while ensuring their long-term commitment through a structured vesting schedule. A Share Vesting Agreement establishes the terms under which shares are earned over time or upon meeting specific conditions, incorporating Hong Kong's legal requirements and market practices. The document is crucial for startups and established companies alike, especially when implementing employee equity schemes or founder vesting arrangements. It addresses key aspects such as vesting periods, cliffs, acceleration provisions, and compliance with Hong Kong corporate and securities laws, while also considering tax implications and protecting company interests through appropriate restrictive covenants and safeguards.
